None Which of the following definitions describes a serial bond?Multiple ChoiceMatures in installments.OMatures on a single date.Secured only by the "full faith and credit" of the issuing corporation.Supported by specific assets pledged as collateral by the issuer.

Explanation: A serial bond is one that matures gradually. Instead, sections of the bond's principal…

Answered: Which of the following definitions…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 13GI

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When the initial present value of a bond payable is higher than its face amount, an entity would usually ________ the _______________________ account when recording amortization of interests. debit; Premium on Note Receivable credit; Premium on Note Receivable debit; Interest Expense credit; Interest Expense
Bonds which are collateralized by specific assets in the event the borrowing company defaults on bond payments are called: Select one: a. serial bonds. b. callable bonds. c. unsecured bonds. d. secured bonds. e. convertible bonds.
Bonds which require the face value (principal) amount to be paid back in installments over the life of the bond are called: Select one: a. serial bonds. b. convertible bonds. c. callable bonds. d. unsecured bonds. e. term bonds. f. secured bonds.
Which of the following would describe a callable bond? Oa. Borrower has the right to issue more bonds prior to due date of existing bonds. Ob. Borrower has the right to call off the interest payments on the bonds. Oc. Investor has the right to call off the interest payments on the bonds. C. d. Borrower has the right to pay off the bonds prior to due date.
Which of the following is not a valid statement regarding bonds payable? a. Bonds issued by an entity represent a financial liability and shall be measured at amortized cost using the effective interest method. b. The market price of a bond issue is the present value of its principal amount plus the present value of all future interest payments, both discounted at the market rate of interest when the bonds were issued. c. Bonds that mature at a single date are called term bonds. d. The amortization of a bond premium increases both the recorded interest expense and amortized cost.
Which one of the following statements is correct concerning bond classifications? Select one: a. A mortgage security is a bond issued solely by a home builder. b. A note is a bond which has an original maturity date longer than 10 years. c. A debenture is a long-term bond secured by the fixed assets of a firm. d. A callable bond can be repurchased by the issuer prior to the initial maturity date. e. A subordinated bond receives preferential treatment over all other bonds in a bankruptcy.
If there is neither a premium nor discount present, the journal entry to record bond interest payments is _______.
A callable bond: Select one: a. can be paid off early at either the issuer's or the bondholder's request b. can have its maturity date extended by the issuer c. can be redeemed early if the bondholder so requests d. can be redeemed by the issuer prior to maturity e. is a bond that pays a variable interest payment
Which of the following statements is true regarding secured and unsecured bonds? O Secured bonds are issued against the general credit of the borrower. O Unsecured bonds are issued against the general credit of the borrower. O Secured bonds have specific assets of the issuer pledged as collateral. O Secured bonds have specific assets of the issuer pledged as collateral, and unsecured bonds are issued against the general credit of the borrower.
The printing costs and legal fees associated with the issuance of bonds should Select one: a. be expensed when incurred. O b. be reported as a deduction from the face amount of bonds payable. c. not be reported as an expense until the period the bonds mature or are retired. d. be recorded as a reduction of the bond issue amount and then amortized over the life of the bonds.
In U.S. GAAP, bond issue costs are considered ________. Group of answer choices a period cost a cost of borrowing that reduces the effective interest expense an initial cost that is expensed when the bonds are issued an element in determining the carrying value of the bonds outstanding
When a bond is held with the objective of collecting principal and interest payments over the life of the bond, it should be account for using which of the following methods FV through OCI O FV through profit and loss method None of the choices O Amortized cost method

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Which of the following definitions describes a serial bond? Multiple Choice Matures in installments. O Matures on a single date. Secured only by the "full faith and credit" of the issuing corporation. Supported by specific assets pledged as collateral by the issuer.